One of the biggest areas of success in mobile has been app install ads, which promote the download of mobile applications. “We expected an increase, but an 11 percent increase in mobile share of ad revenues in a single quarter is an astounding surge, and that's for a company that just eight months ago some were saying had missed the boat on mobile,” said Craig Palli, chief strategy officer of Fiksu, Boston.
While Facebook’s significant gains in mobile are propelling the social network to new heights, managing advertiser demand versus user tolerance for ads will be a challenge for the company going forward.
Those with a stake in the social-mobile space sounded thrilled with the results. Craig Palli, chief strategy officer at the mobile app firm Fiksu, said that he "expected an increase, but the [double-digit jump] in mobile share of ad revenues in a single quarter is an astounding surge."
Facebook's mobile ads accounted for 41 percent of its $1.62 billion in ad sales during the second quarter, during which the company reported $1.81 billion in total revenue, beating Wall Street expectations on Wednesday.
For comparison, mobile was 30 percent of its ad sales during the first quarter. Facebook's monthly active users on mobile skyrocketed to 819 million during Q2, a 51 percent increase year over year.
Glide currently has just $2 million in seed funding, and the cost to acquire a loyal app user has been anywhere from $1.29 to $1.50 over the past several months, according to mobile app marketing firm Fiksu.
Video chatting app Glide is on a roll of sorts. In recent weeks this mobile messenger for iPhone and Android devices has been climbing the app store charts on both platforms, having gotten as high as #6 overall in the Apple App Store, and #1 in the App Store’s social networking section. Today, the iPhone app is ranked #16 in the U.S., Glide’s top market – just one spot below Instagram, according to AppData’s leaderboards. But on the iPhone App Store on the phone, it has actually bumped Instagram from spot #15 in the U.S.
"Mobile app marketers have quickly realized the disruptive power of Facebook mobile app install ads, which have poured a new stream of effective and cost-efficient inventory into the market," Fiksu CEO Micah Adler said last month. "Savvy marketers have already taken advantage of Facebook's extensive capabilities for focusing on specific audiences, and as more brands follow suit, we can expect volume to continue to climb."
Facebook (NASDAQ:FB) is testing new ad units that insert recommendations for mobile games directly into a user's notifications tab, alongside comments, likes and other social interactions.
“As the App Store gets more crowded, success within a category or subcategory is becoming more important,” said Craig Palli, chief strategy officer of Fiksu, Boston.
As the application market continues to grow, marketers are increasingly looking to rank well in smaller subcategories as a way to stand out in app stores.
A common app marketing approach is to launch a "burst" campaign as a product comes to market, with a goal of driving as many downloads or purchases as possible. However Kiladis suggested burst campaigns need to be augmented to look at how the momentum can be sustained over time--particularly if your marketing strategy proves successful.
Speaking as part of a recent online panel discussion hosted by Fiksu, Barden was one of several experts trying to help developers understand the most critical things they need to do for long-term user acquisition, retention and monetization of their mobile games.
Getting to that starting point, however, may require some ingenuity from app developers. Based on advice from a variety of firms in this space, here are the best ways to begin the journey.
“Well-implemented targeting typically also lends itself to compelling retargeting,” said Craig Palli, vice president of business development at Fiksu Inc., Boston.
As marketers increasingly look to tie together their email and mobile channels, Twitter’s new retargeting tool that was launched last week will likely shift big amounts of direct response advertising into mobile.
New data out from Fiksu may have more brands looking to the mobile space to engage and interact with consumers. According to their new report, mobile is returning more on the ad investment, especially in terms of engagement and cost-effectiveness.
Fiksu's report finds that the cost per engagement of a mobile app ad is up to 10 times lower than paid search. Researchers also found that mobile CPMs are the second lowest, behind social network advertising, and that mobile display CPCs are about 90% lower than for desktop CPCs.
Users of the Facebook mobile app may have noticed that the app now features more ads prompting users to download certain apps.
However, these little blips could be actually having a significant impact on the way that marketers try to sell apps to iOS users, according to a company called Fiksu that tracks app downloads and performance in the context of marketing.
As the mobile app marketing landscape evolves at lightning speed, I’m reminded how important it is for marketers to constantly assess new ways to identify and reach their most loyal customers.
I recently took the time to analyze the performance of a few early Facebook mobile app install ad campaigns to assess how they worked and the early ROI. Here’s what I discovered.
Written by Craig Palli of Fiksu, originally posted on MediaPost.